It ascended to its highest level against the US dollar since last July and is now worth over £1.29.
This is welcome news for travellers, as since the start of the year, the value of the pound abroad has grown against 93% of the most visited nations, according to No1 Currency.
And it is thanks to the economic picture of the UK improving, with inflation finally dropping to the Bank of England’s 2% target. Since the beginning of the year, the sterling boost was quickest against the Egyptian pound, which grew in value by 56%.
However, changing your pounds into Kenyan shillings, Sri Lankan rupees, South African rands or Kuwaiti dinars will see you miss out on a good deal.
But, other notable surges have seen the pound rise by 15% against the Japanese yen and 14% against the Argentine peso. Since its great value, sales of the Japanese currency have shot up by 42%.
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It means it could be the ideal moment to cash in for your holiday kitty if you are jet-setting this summer.
Simon Phillips, managing director of No1 Currency, said: “One week on from the election, Britain’s new Prime Minister isn’t the only one enjoying a moment on the global stage. British holidaymakers can be winners too, thanks to the rising value of sterling.
“Our analysis reveals that compared to the start of the year, the pound in your pocket now goes further in the vast majority of countries typically visited by British tourists. With sterling gaining ground against so many popular currencies, millions of Britons heading abroad this summer will see a welcome boost to their spending power.”
Phillips added: “Whichever destination you pick for your holiday, cash is your friend abroad. Using foreign currency – notes and coins – helps you keep track of your spending and avoid unexpected card charges. The price you see is the price you’ll pay, and cash is still king in many countries – so you can be sure it will be accepted everywhere.
“However don’t forget that exchange rates can differ a lot between different travel money providers, so make sure you shop around to get the most competitive quotes and never leave it to the airport to pick up your holiday money.”
Top 10 best value currencies for UK travellers in 2024
| Rank | Currency | £1 on 1 January | £1 today | Sterling gain |
| 1 | Egyptian pound | 39.34 | 61.47 | 56.3% |
| 2 | Japanese yen | 179.53 | 206.9 | 15.2% |
| 3 | Argentine peso | 1029.27 | 1175 | 14.2% |
| 4 | Turkish lira | 37.53 | 42.2 | 12.4% |
| 5 | Mauritian rupee | 56.04 | 61.08 | 9% |
| 6 | South Korean won | 1648.74 | 1773.46 | 7.6% |
| 7 | Swiss franc | 1.07 | 1.15 | 7.4% |
| 8 | Chilean peso | 1118.87 | 1198.3 | 7.1% |
| 9 | Taiwanese dollar | 39.12 | 41.78 | 6.8% |
| 10 | Thai baht | 43.81 | 46.61 | 6.4% |
What to do with leftover holiday cash
If you have returned from your break with some leftover cash, there’s no need to get stung by commission rates or poor value, as there are other options for your leftover holiday money.
They include selling the currency to family and friends who will be heading on their travels soon.
By cutting out the commission and fees associated with exchange bureaux, each of you should be able to save a few quid.
Alternatively, you could gift the cash to charity.
This could mean slipping your coins and notes into the envelopes supplied on aeroplanes, rolling them inside donation banks at museums or seeing if your local charity will accept them.
As an example, Oxfam has partnered with Cash4Coins, which works with businesses, banks and charities to exchange foreign coins and banknotes.
